Competition is an essential part of the startup world. When evaluating a startup, investors need to study its target industry and understand what its competition looks like.
But this is where investors typically fall into a trap. If the startup has a lot of competitors, investors may assume that’s a bad sign. And that it’s unlikely to succeed against so many competing products. If the startup has few or no competitors, they assume that’s a good sign. Surely it will succeed if it’s the only one in the market!
But that’s the wrong way to think about competition.
In this episode of Startup Insider, Vin Narayanan and Andy Gordon discuss the right way to think about competition in the startup world – and bust plenty of myths along the way.
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